When a financial burden pops up, the first thing we might think of is to get a loan. No one likes getting into financial burdens; the stress you experience isn’t pleasing at all. However, with payday loans, you can nip your financial situation in the bud and have peace of mind. These loans are known to be quick and easy to apply for, and the disbursal is pretty fast.
Furthermore, your credit history is not considered when you apply for an instant payday loan. Provided you have a salary that can be used to repay the loan, you can get the loan easily. If you are looking for how to get a payday loan online, worry not. We’ve got you covered.
Before applying for a personal loan online, you may ask yourself if the online approval is guaranteed to work. For a payday loan, the lender offers credit with a higher rate based on income. It is a short-term loan that is usually calculated as a percentage of your next paycheck. This means that to be approved for the loan, you must be a salaried person.
Keep reading about payday loans and how to get them online. You will be able to know the amount you can get, the rate applicable, repayment tenure, and eligibility restrictions.
What’s a Payday Loan?
This is a short-term unsecured loan you can get when you need cash really quickly. These short-term loans are given based on the principal amount of your next paycheck. However, they are charged a higher interest rate since they have a very short tenure. These loans are also known as check advances or cash advance loans.
Basically, you have to repay a payday loan in a period ranging from one week to 60 days, but it depends on the lender. You can secure the loan online, which is cool as you don’t have to go through the hassles of waiting in queues at the bank. Remember, payday loans must be paid back on your next payday, which is ideal for those who have depleted their salary and want urgent credit.
You can use a payday loan to settle your bills and finance household expenses. Besides, you can also use it to pay for other short-term needs if you have already used your salary on other things before the end of the month. Even though payday loans come with a higher interest rate, they’re still preferred by many people. One of the reasons payday loans are a go-to option for many borrowers is that they don’t require any form of collateral. Also, no guarantor is necessary to avail of the loan.
How a Payday Loan Works:
It is based on one’s salary– The total amount you get on a payday loan depends on your salary. That’s why it’s known as a payday advance.
Short repayment period: The time to repay the loan can range from one week to 2 months, but it varies from lender to lender.
No credit checks: The lender does not conduct a credit check before approving the payday loans. That’s why someone who didn’t get approved for a personal loan can get a payday loan.
Collateral-free– You don’t have to provide collateral as security before getting approved for the payday loan.
Eligibility: You should be an Indian citizen aged 21 years and above. Also, you should be earning an income through business or salary or be a self-employed individual.
Interest rate: Since payday loans have a shorter tenure and no collateral or guarantor is needed, the interest rate tends to be higher, about 36%.
There are no closure costs– Payday loans don’t come with prepayment costs. Thus, if you can pay the loan before the end of your tenure, you are free to do so with no worries about the costs.
Documents to Apply for Payday Loans
Before availing of a payday loan, there are some documents you should provide. This will help the lender know if you can repay the loan. They don’t want to take risks because the loans are collateral-free.
- Aadhaar card or passport as proof of your identity.
- Driving License, Aadhaar card, or Passport as proof of your address.
- Proof of your age.
- Proof of income.
Applying for a Personal Loan Online
It is easier to apply for a personal loan. Most lenders nowadays allow individuals to apply for loans online through websites or with apps. Normally, payday loans can be applied online through websites and personal loan app, where you have to enter your details in the application form and upload relevant documents that the lender needs. Thereafter, you input the OTP when asked and wait for approval. With a few clicks, you will be able to apply for a payday loan and wait for your loan to be approved in minutes, and funds will be sent to your account instantly.
Conclusion
That’s it! You now know everything related to payday loans and how to get them online. Keep in mind that these loans are different from other types of loans and have a very short tenure. All in all, the loan is helpful when you need an instant cash loan.
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